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Foreclosure First Procedure
The foreclosure procedure may begin when you miss a single monthly mortgage loan payment (a delinquency). In some instances, rental property owners and landlords(who failed to make a monthly mortgage loan payment or who anticipate the inability to make such payments) have a very hard time contacting their lender or its servicing agent. As of September 2008, a lender or its servicing agent is required to contact the homeowner 30 days in advance of initiating a foreclosure or to demonstrate that a good faith effort occurred to contact the homeowner.
However, this contact requirement only applies to rental property owners and landlords who obtained their mortgage loan between January 1, 2003 and December 31, 2007. The lender or its servicing agent is not required under California law to contact or exercise due diligence (act in good faith) to contact the landlord or rental property owner who obtained a mortgage loan before or after this 5-year window. Some mortgage loans insured or purchased by agencies or enterprises of the federal government are also subject to certain advance contact or notice requirements.
The purpose of the advance contact or notice is to provide the homeowner with information regarding the alternatives or options that may be available to avoid foreclosure, including referring the homeowner to independent counseling. An alternative or option may include modifying or restructuring your mortgage loan.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Landlords and Rental Property Owners Guide to First Procedure in Foreclosure is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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